AZ Company has 400 obsolete widgets that are carried in inventory at a total cost of $576,000. If these widgets are upgraded at a total cost of $100,000, they can be sold for a total of $160,000. As an alternative, the widgets can be sold in their present condition for $40,000.

Suppose the selling price of the upgraded widgets has not been set. At what selling price per unit would the company be as well off upgrading the widgets as if it just sold the widgets in their present condition?

$308

$350

$110

$50